Example – practical scenario
You are working on a national sports stadium, at Umberley in the make-believe country of Utopia. The project is of obvious national importance. It is not clear who the Employer would be; the government has set up a national sports body (NSB) which invited tenders from a list of six tenderers who were based in several different countries. You are working for NSB and are only involved with the contract concerning the Main Contractor (in this case it is a novel type of arrangement called ‘Prime Contracting’). The Main Contractor is a company set up for the sole purpose of the national sports stadium at Umberley. The company is called AlwaysLate and is an entirely-owned subsidiary of a parent company in another jurisdiction. AlwaysLate has offered to construct the stadium for a fixed sum (300Million pengoes – N.B. the currency of Utopia 1 Pengo = 1$US at 2008).
You are working on a new Terminal building on UKs hub airport (£500 millions). It is a high profile project due to value (£500 millions) and its importance for the airports success and its influence on the local and national businesses. The main stakeholders are the airport operator (the client - H) and several airlines who will be the users of the finished building, who have detailed and very high quality requirements which need to be satisfied. You are working for the principal contractor B (one of the three biggest construction companies in the country) as a quantity surveyor administrating several fit out contracts. The curtain wall package has been awarded to the company Luk, which is based in London as one of the operating companies of a German parent company (Lge). Luks scope of works includes different types of wall glazing, metal claddings, as well as finishes to the wall – as skitings, ventilation grills etc.), the total value of this contract is £5.5 millions and the form of contract used is the Engineering and Construction Subcontract.
NSB has accepted that...